This is the amount of profit, or return, that an individual can expect based on an investment made.Select one:a.Internal Rate of Returnb.Post-Payback Profitabilityc.Payback Periodd.Accounting Rate of Return
Question
This is the amount of profit, or return, that an individual can expect based on an investment made.Select one:a.Internal Rate of Returnb.Post-Payback Profitabilityc.Payback Periodd.Accounting Rate of Return
Solution
The answer is a. Internal Rate of Return. The Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. It is a discount rate that makes the net present value (NPV) of all cash flows (both positive and negative) from a particular project equal to zero. IRR calculations rely
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